“Estate Planning” DescribedEstate planning is the process of legally structuring the future disposition of current and projected assets. What is estate planning? Estate planning is many things. Th

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Advance Directives/Living Wills are a Critical Component of Estate Planning

Posted on: March 14th, 2014

March 31, 2012 marked the seventh anniversary of the death of Terri Schiavo, the 41-year-old who succumbed after her feeding tube was removed as part of a very public legal battle between her husband and parents....

Need for Estate Planning

Planning Opportunities Available to Affluent Families

Posted on: March 12th, 2014

With the $5.12 million per person exemption from federal estate tax ($10.24 million for married couples), most of the estate planning 'talk' recently has been on the planning opportunities available to affluent families. However, the need for estate planning remains for everyone....

Create successful wealth transfers with open communication

Posted on: March 10th, 2014

A Forbes article claims that '70% of intergenerational wealth transfers fail,' discussing a new Williams Group study examining the long-term effects of wealth transfers in 3,250 families. 'Failure,' according to the study, means situations where the heirs dissipated wealth, often with the family assets becoming a source of friction and dispute....

Paying for College . . . and accomplishing estate planning too

Posted on: March 7th, 2014

With higher education costs outpacing inflation by 5-6% per year, and the average cost of a four-year public school at nearly $20,000 per year (double that for private schools) it's no surprise that many parents and grandparents are deeply concerned about how they will pay for higher education. Many of these clients are similarly concerned about estate planning.
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The Most Important Love Letters You’ll Ever Write

Ensuring Income Tax Deferral for Retirement Plan Beneficiaries

Posted on: March 3rd, 2014

Some of the most generous provisions of the tax code are those that permit beneficiaries of IRAs and other qualified retirement plans to defer income tax on the plans until time of withdrawal. This allows the IRA or qualified plan to grow significantly more than if it were subject to tax on gains each year....

Potential Problems with Beneficiary Designations

Posted on: February 26th, 2014

Many clients use beneficiary designations, and for good reason. Some significant assets, including life insurance policies, IRAs, retirement plans and even bank accounts, allow a beneficiary to be named. It's free, it's easy, and, when the owner dies, these assets are designed to be paid directly to the individual(s) named as beneficiary, outside of probate....

Estate Planning for Second Marriages

Posted on: February 24th, 2014

In first marriages, the couple generally has the same goals when it comes to their estate planning: take care of the surviving spouse for as long as he or she lives, then whatever is left will go to the children. They may own many of their assets jointly and, at the death of the first spouse, more than likely everything will go to the surviving spouse just as they had planned....

Why You Should Name a Stand-Alone Retirement Trust as Beneficiary

Posted on: February 21st, 2014

(For IRAs and Other Tax-Deferred Retirement Accounts)
Naming the right beneficiary for tax-deferred retirement accounts is critical. Most people want to continue the tax-deferred growth for as long as possible, pay the least amount in income taxes and get the maximum stretch-out....

The Many Needs for Life Insurance in Our Lives

Posted on: February 19th, 2014

The main reasons most people have life insurance are to pay final expenses (medical, funeral, burial, etc.), replace an income stream and/or create wealth for our dependents after we die. Life insurance can also play an important role in business, estate planning and charitable giving....

5 Common Estate Planning Mistakes to Avoid

Posted on: February 17th, 2014

From time to time, it's good to review why having a complete, up-to-date estate plan is so important. In addition to confirming our own actions, it can provide us with valuable information to pass along to friends and family who, for whatever reasons, have yet to act. So, here are five common estate planning mistakes to avoid....

Treating Children Fairly Does Not Necessarily Mean Equally

Posted on: February 14th, 2014

Most parents want to treat their children fairly in their estate planning, and many assume that means having their children inherit equally. But fair does not necessarily mean equal. There may be special circumstances to consider....

Four More Common Estate Planning Mistakes

Posted on: February 12th, 2014

Here are four more common mistakes in estate planning. If your plan is in place and current, this will serve as more validation that you are on the right track. Feel free to share this information with friends and family members, especially those who may not have a plan in place....

The Advisory Team Approach to Estate Planning

Posted on: February 10th, 2014

Estate planning is not simply the documents prepared by an attorney, nor is it the insurance and financial plan recommended by a financial advisor. Properly done, estate planning encompasses at least the legal and financial elements, but it may include more, as estate planning often points out the need to plan in other areas....

Planning For Incapacity and Long-Term Care

Posted on: February 7th, 2014

With people living longer due to advances in medicine and changes in lifestyle, odds are that most of us will become disabled for some time before we die and may need long-term care. Unfortunately, too few plan for an event that is more likely to be a probability than a possibility--and the consequences of not planning can be disastrous for all involved....

What to Do with an Inherited IRA

Posted on: February 5th, 2014

IRAs are among the largest assets inherited by heirs and beneficiaries. These accounts have been able to grow to such large amounts because income taxes are deferred until the owner begins to take distributions, usually after reaching age 70 1/2 .
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Protecting Against Financial Fraud in Charitable Giving

Posted on: February 3rd, 2014

Americans are very generous when it comes to charitable giving. In addition, lower earners give more proportionately than higher earners. Perhaps this is because lower earners understand how easily a family can slip into financial crisis through the loss of a job or medical expenses. The thought of 'that could be me' makes people very sympathetic to helping others in need, and many cheerfully give their hard-earned money to try to help people. People of faith tend to be generous and faithful givers, and Americans, in general, are quick to help whenever tragedy or devastation strikes anywhere in the world....

Estate Planning for Young Families

Posted on: January 31st, 2014

Many young families put off estate planning because they are young and healthy, or because they don't think they can afford it. But even a healthy, young adult can be taken suddenly by an accident or illness. And while none of us expects to die while our family is young, planning for the possibility is prudent and responsible....

How to Leave Assets to Minor Children

Posted on: January 29th, 2014

Every parent wants to make sure their children are provided for in the event something happens to them while the children are still minors. Grandparents, aunts, uncles and other relatives often want to leave some of their assets to young children, too. But good intentions and poor planning often have unintended results....

How to Leave Assets to Adult Children

Posted on: January 27th, 2014

When considering how to leave assets to adult children, the first step is to decide how much each one should receive. Most parents want to treat their children fairly, but this doesn't necessarily mean they should receive equal shares of the estate. ...

Why Does a Living Trust Cost More than a Will?

Posted on: January 24th, 2014

It will probably cost more initially to set up a well-drafted living trust than to have a will prepared. A true cost comparison should include not only the expense to establish the will or trust, but also what it will cost should you become incapacitated and after you die....

Should You Disinherit a Child?

How to Choose a Trustee

Posted on: January 20th, 2014

When you establish a trust, you name someone to be the trustee. A trustee basically does what you do right now with your financial affairs--collect income, pay bills and taxes, save and invest for the future, buy and sell assets, provide for your loved ones, keep accurate records and generally keep things organized and in good order....

Estate Planning for Unmarried Partners Part One: Planning for After Death

Posted on: January 17th, 2014

Estate planning is creating a set of instructions that specify how property is handled after death, and how property and health care decisions are handled during a period of incapacity. Proper estate planning is important for everyone. ...

Providing for Your Parents in Your Estate Plan

Posted on: January 15th, 2014

If you are part of the baby boomer generation (born between 1946 and 1964), you may also find that you are a member of the sandwich generation, with responsibilities to both your parents (now or in the future) and your children....

Family Values and History Are Still the Best Inheritance

Posted on: January 13th, 2014

These results are from the 2012 Allianz Life American Legacies Pulse Study* which surveyed baby boomers (age 47 to 66) and 'elders' (age 72 and older). Allianz Life conducted a similar study in 2005. Interestingly, despite the financial crises that occurred between 2005 and 2012, the results were strikingly similar, with a high percentage of both boomers (86%) and elders (74%) agreeing that family stories, values and life lessons are the most important part of a family's legacy....

Budgeting, Part 3: Instilling Money Values in Children and Grandchildren

Posted on: January 10th, 2014

Money values can be a guiding light that is a component of your legacy. If communicated frequently and purposefully, these values can be an important reference for your loved ones as they learn to handle money....

How to Make a Family Meeting a Successful Part of the Estate Planning Process

Posted on: January 8th, 2014

You've made the hard decisions, your documents are signed, your trust is funded, a business succession plan is in place. Congratulations, you've finished your estate planning. But have you, really? Have you explained your planning to your family? Will they understand how your plan will work and what they may need to do if you become ill or when you die? Will they wonder why you made certain decisions?...

Young Adults Need Estate Planning, Too

Posted on: January 6th, 2014

Once a child turns 18, parents lose the legal ability to make decisions for their child or even to find out basic information. Learning you cannot see your college student's grades without his/her permission can be mildly frustrating. But a medical emergency can take this frustration to a completely different level. ...

Organize Information for Your Family

Posted on: January 2nd, 2014

Think for a few moments about what would happen if you suddenly became incapacitated or died. Would your spouse or family know what to do? Would they know where to find important records, assets and insurance documents? Would they be able to access (or even know about) online accounts or files on your computer? Would they know whom to ask if they need help? Putting the effort in now to establish a formal document inventory can alleviate unnecessary anxiety and turmoil in the future....

Budgeting, Part 1: Budgeting as a Friend and not a Foe

Posted on: December 27th, 2013

Budgets do control spending behavior. However, budgets also allocate resources to the areas of highest impact or interest. When a budget is structured based on priorities and values, much of the controlling element is removed....

VA Benefits For Long-Term Care of Veterans and Their Surviving Spouses

Posted on: December 24th, 2013

Many wartime veterans and their surviving spouses are currently receiving long-term care or will need some type of long-term care in the near future. The Veterans Administration has funds that are available to help pay for this care, yet many families are not even aware that these benefits exist....

The Truth About Personal Risk Management, Part 2: Using Trusts in Estate Planning

Posted on: December 20th, 2013

Paying insurance premiums to protect against potential losses frees us mentally to enjoy driving a car, leave our house empty while on vacation and receive medical treatment for an injury or illness. In the same way, the use of trusts acts like insurance and can shift anxiety to comfort, turmoil to peace, and complexity to understanding....

The Truth About Personal Risk Management, Part 1: Insurance

Posted on: December 18th, 2013

Personal risk management is being aware of the risks in your home and in your life, and then planning how to handle those risks. Insurance plays a big part in managing risk. Most people don't like paying insurance premiums, but when something happens and the insurance pays for a covered expense, they are relieved they had it....

Strategies for Those Awkward Financial Discussions

Posted on: December 13th, 2013

There may be people close to you (spouse, parents, children) who are practicing financial behaviors that are unproductive or destructive. You want to help them get back on track, but you don't want to come across as judgmental or condescending, or put them on the defensive....

Long-Term Care Planning, Part 2: Your Funding Options

Posted on: December 11th, 2013

The first part of planning for long-term care is realizing that, a) most of us will need this kind of care for at least some time before we die and b) the cost of this care can be financially devastating for a family if it is not planned for in advance. This was covered in Long-Term Care Planning, Part 1....

Long-Term Care Planning, Part 1: A Central Requirement

Posted on: December 9th, 2013

Health care has been the topic of discussion lately, but the greatest threat to your financial health is long-term care. This is the kind of care you need if you are not able to perform normal daily activities (such as eating, dressing, bathing and toileting) without help, and it is expected that you will need this help for an extended period of time, often for the rest of your life....

Are You Wasting Money? Part Two: Food, Clothing and Entertainment

Posted on: December 6th, 2013

In Part One of this series on wasting money, we looked at housing, interest and transportation--areas in which you or your loved ones may be wasting larger amounts of money. In Part Two, we will look at how money can be wasted in everyday areas of life--specifically food, clothing and entertainment...

Are You Wasting Money? Part One: Housing, Interest, and Transportation

Posted on: December 4th, 2013

Most of us are guilty of wasting money in one way or another. Often we are so busy that we pay too much for convenience, and we don't comparison shop or look for bargains. Sometimes we waste money because we just stay in the same routines--shopping at the same stores, eating at the same places, using the same services. ...

Potential Problems with Beneficiary Designations

Posted on: December 2nd, 2013

Many clients use beneficiary designations, and for good reason. Some significant assets, including life insurance policies, IRAs, retirement plans and even bank accounts, allow a beneficiary to be named. It's free, it's easy, and, when the owner dies, these assets are designed to be paid directly to the individual(s) named as beneficiary, outside of probate....

Trust Administration

Posted on: December 2nd, 2013

A living trust is a legal document that, just like a will, contains your instructions for what you want to happen to your assets when you die. But, unlike a will, a living trust can avoid probate at death, control all of your assets and prevent the court from controlling your assets if you become incapacitated....

Paying for College and Estate Planning

Posted on: November 29th, 2013

With higher education costs outpacing inflation by 5-6% per year, and the average cost of a four-year public school at nearly $20,000 per year (double that for private schools) it's no surprise that many parents and grandparents are deeply concerned about how they will pay for higher education. Many of these clients are similarly concerned about estate planning...

The Most Important Love Letters You’ll Ever Write

Posted on: November 27th, 2013

Many Americans believe that estate planning is simply preparing for one's death and is only necessary for the affluent. To the contrary, estate planning is as much about passing values to loved ones as it is about passing material possessions...

The Value of Having a “Plan” in Estate Planning

Posted on: November 18th, 2013

All too often, estate planning is viewed as a transaction: a will, a living trust, powers of attorney, etc. But the best planning happens when the professional can get to know the client on a deeper level, to uncover hopes, dreams and aspirations. It becomes more about family and values, and it becomes a process instead of a transaction....

Can You Appeal a Denied Medicare Claim in Philadelphia, PA?

An Integral Time for Giving in Bala Cynwyd, PA

Have a Blended Family? Consider a Trust to Protect Your Children in Wynnwood, PA

Posted on: December 6th, 2012

To avoid the time and expense of probate proceedings, property should be put in a living trust when a widower has children and then remarries, says J. Graydon Coghlan, president of CFG Wealth Management of La Jolla, Calif....

Fiscal Cliff Killing Family Farms in Springfield, PA

Posted on: December 3rd, 2012

Farmers worried about tax increases that would take effect Jan. 1 if Congress can't compromise on the so-called fiscal cliff have helped lead to a frenzy of farmland sales this fall. The worries about possible increases in capital gains and estate taxes are adding to the normally busy time for farmland sales after harvest in Iowa and Nebraska....